The bill would prevent new casinos in certain parts of the state
Iowa lawmakers are pushing forward with a bill that would impose new restrictions on future casino projects across the state. The legislation, which advanced in the Senate on Thursday, would prevent cities from using a key funding mechanism for infrastructure projects linked to newly licensed casinos.
The bill would not stop the construction of a planned $275 million casino in Cedar Rapids, which received state approval earlier this month. However, local officials are concerned it could limit their ability to use tax increment financing (TIF) to fund road upgrades and flood control efforts around the casino site. TIF is commonly used to support urban renewal projects by redirecting tax revenue from rising property values into local improvements.
Supporters of the bill argue it ensures that tax dollars meant for schools, public safety, and local services are not diverted to support gambling expansion. Senator Scott Webster, a Republican from Bettendorf who introduced the measure, emphasized that the bill is not targeting any specific casino but rather setting a standard for future gaming developments in Iowa.
Cedar Rapids officials say they are reviewing the potential impact of the legislation but maintain that the casino developers have not requested and do not intend to seek tax incentives. Even so, the restrictions could make it harder for the city to fund broader infrastructure projects that would benefit both the casino and surrounding areas.
The push for tighter regulations comes after a previous attempt to block new casinos in the Hawkeye State. Last year, a proposed five-year moratorium on casino expansion passed the House but failed in the Senate. Now, with the Cedar Rapids project moving ahead, lawmakers are taking another approach to limit how gaming projects interact with public financing tools.
